With the new divi tax next fy

[DaveB]

A salary of £11K makes sense if you like paying National Insurance (employer 13.8%, employee 12%) rather than corporation tax (20%).

Since employer NI reduces profit and thus corporation tax, the net rate is about 11% for employer NI, so for the band between £8K (where NI kicks in) and £11K (the start of the basic rate band), total NI tax runs about 23% and income tax is 0%, while corporation tax would be 20% and income tax / divi tax is 0%. So if you use an £11K salary as opposed to £8K, it will cost you about £90.

If you have any BIK, such as private health insurance, that can affect what is optimal.

BUt if you have more than one employee you can claim relief on the Employers NI. You can do that now, but from next year it only applies to companies with more than one employee.

[WordIsBond]

BUt if you have more than one employee you can claim relief on the Employers NI. You can do that now, but from next year it only applies to companies with more than one employee.

Next year was the context of the question. And if you do have employees, the employment allowance is likely to be used up by the employer NI on their salaries, leaving none to apply to yours.